Gregg Gordon: Why Talent Is Still Your Greatest Asset

I spoke to Gregg Gordon, the Vice President of the Data Science Practice Group at Kronos Incorporated and author of the new book Your Last Differentiator: Human Capital, about why talent is still a company's best asset, how to compete in the age of disruption, how to build a highly engaged workforce, what makes a company a best place to work and his best advice.

Gordon oversees the analytics, data science, and big data focused group at Kronos. He is also the author of Lean Labor: A Survival Guide for Companies Facing Global Competition, which is currently being transformed into a course by the American Payroll Association. Prior to Kronos, Gordon spent more than 20 years in leadership roles across a diverse set of functions including engineering, supply chain management, and product marketing at Areva Inc. and i2 Technologies. He also received two U.S. design patents for products that he developed.

Dan Schawbel: We've heard for years that "talent is a company's greatest asset" yet in the news there are minimum wage disputes, outsourcing, etc. Do they believe it or is it for PR?

Gregg Gordon: It’s easy to say because machines, inventory and intellectual property aren’t going to give a CEO too much argument about placing second, third, and fourth. But the point you make is a good one. Are companies also acting that way? It’s painful when you are the one on the receiving end of being outsourced, laid off or having your wages squeezed unfairly. It’s also easy to target a company because it makes a difficult decision. That doesn’t necessarily mean the company doesn’t value its employees. What’s more important is how employees are valued over longer periods of time, when the company isn’t making headline news. Many companies compete successfully in difficult environments and treat their employees as their most important asset. Southwest Airlines is a great example of one of those companies. Others such as Costco have realized that investing in above-average wages means employees feel valued, turn over less, want to keep their jobs, and better serve customers. As a result, Costco’s labor productivity becomes a competitive advantage. Other organizations have not been so creative or have not been willing to provide the transparency, trust, and respect required to maintain a highly productive and engaged workforce. So it can be hard to tell the difference between organizations that simply make those statements and those that walk the talk. We used to have to rely on the public statements or look at singular events to make up our minds about how an organization treats its workforce. This is overly simplistic however. How an organization values its workforce is multi-dimensional.

One company I work with pays very average wages, but it invests extremely heavily in supporting its employees’ formal education. For many employees, a degree would not be a reality without the help of this company. This company has highly productive employees with low turnover. If you were to simply look at its hourly wage, you would think they didn’t value their employees. If you were to simply look at the hourly wage, you may not be convinced that the company has a strong focus on engaging its employees.

Today, websites such as glassdoor.com provide a window into an organization’s pulse, unfiltered, whereby we can hear directly from employees the unvarnished truth on multiple dimensions such as wages, benefit, and how managers treat their direct reports. For prospective employees and customers, this window into the workforce is a newer aspect in the evaluation process of an organization.

Schawbel:How can organizations compete with agile startups and disruptions in the market?

Gordon: Those strike me as two different challenges. Let’s discuss disruptions in the market first. By its very definition, this is something that is already occurring at a significant pace. These are very difficult to combat. Look at the hotel industry as an example. Short term housing regulations and the hotel industry evolved together. What was previously a barrier to entry for many competitors of hotels now hinder the hotel industry to react to Airbnb. These disruptive companies have found new ways to service markets that make it difficult for incumbents to keep one foot in their existing market while competing in the new paradigm.

Competing with agile startups is a little easier. Many companies do this today by utilizing one or more strategies that encompass some level of build or buy. 3M is an example of a large company that has practiced internal innovation and agile execution for decades and is very good at it. Amazon is also active in spinning up and giving new ideas a shot of investment, yet disciplined enough to also shut them down if they are not quickly viable. Between build and buy is investing in these same agile startups that show promise. There are more than 200 active corporate venture funds with Intel and Google being the largest investors. This strategy recognizes that outsiders have good ideas and it allows these companies to reduce the odds that they will be surprised by a startup. Finally, other companies look for rising stars and simply buy them. Walmart’s purchase of Jet.com and Unilever’s acquisition of Dollar Shave club are examples of this strategy.

While none of these strategies is guaranteed to stop an organization from being bested by a competitor, simply focusing on one or more of these techniques forces an organization to look beyond its core products and practices and recognize that market changes and different ideas than what has been currently working can be successful.

Schawbel:What are some ways to build a highly engaged workforce?

Gordon: In my book Your Last Differentiator: Human Capital I focus on transparency, trust, and respect. Transparency means sharing with employees the strategy of an organization and the challenges it faces. They are the ones in the trenches and understand many aspects of the business and market. With the big picture explained, they might be able to peek around a corner more effectively than management. Trust them to make the right decisions when they are armed with the right training and tools. It’s much easier to run an organization when large amounts of energy aren’t expended on command and control. Respect employees through recognition of their efforts; strong compensation; and spotlighting employee efforts when things go well and even when risk is taken that result in failure. Finally, organizations need to bring innovation to their own Human Resource practices and business processes to accommodate the personal demands and aspirations of their employees. Organizations that have taken this approach have realized that using these techniques aren’t an increased cost but rather an investment that is paid off through improved innovation and execution.

Schawbel:Why do you think Kronos gets on the best place to work list every year? What makes your work environment special and engaging?

Gordon: Our CEO, Aron Ain, practices his own brand of these traits. Kronos serves a diverse global market with organizations in every industry including the public sector. The software industry is extremely competitive and fast moving. Aron understands that he must provide direction and explain how each role contributes toward this strategy. He and his management team then empower employees to act, which also includes allowing them to take risks. When employees feel that they have control over their professional destiny and also benefit by being part of a large, thriving, and successful organization, it brings out the best in an individual. These acts are recognized frequently through various methods that let employees know that they are not simply a number but visible at all levels. Named a highest rated Glassdoor CEO in 2016, Aron also ensures that the pressures of home life are not ignored. Through benefits such as unlimited paid time off, Aron has empowered employees to manage their own work life balance. When a Kronite has previously worked at a company that doesn’t act this way, it’s not hard to figure out why they do their best to make Kronos successful and remain highly engaged.

Schawbel:What are your top three pieces of career advice?

Gordon:

1. The digitization of the world is not going to stop anytime soon. Just as communication skills are a must-have for advancement, being competent in technology and how to apply it to business problems will become a required skill to compete.

2. Explore different functional roles to gain experience and understanding of how different parts of an organization work. If that option is not available, at least spend time with people in those different areas, including customers, to learn more about their jobs and challenges. Having a better understanding of the complete business environment will provide more opportunities to solve the toughest problems, which typically occur in the gaps between roles.

3. Make sure you take time to relax and invest in your personal life. Working harder isn’t the answer for success, it only results in fatigue and burnout. A rested mind will work smarter and be more creative.

I'm a partner and research director at Future Workplace, an executive development firm dedicated to rethinking and reimagining the workplace. I also wrote the New York Times bestselling book, Promote Yourself, and Me 2.0. In 2012, I was named to the Forbes Magazine 3...